What does an "occurrence" refer to in insurance terms?

In insurance terminology, an "occurrence" encompasses a broad concept that typically includes incidents resulting from a continuous exposure to harmful conditions. This definition is crucial in understanding liability policies, where coverage is contingent not only on isolated accidents but also on the cumulative impact of ongoing exposure over time.

The term highlights that liability may arise from events that are not always immediate or sudden, but instead may result from the gradual buildup of risk factors. For instance, a person may develop a health issue due to long-term exposure to a hazardous environment, and this situation would qualify as an 'occurrence' under specific insurance policies.

This definition aligns with many liability insurance coverages, such as general liability insurance, which protects against numerous claims arising from multiple incidents that could occur over an extended period. Thus, the answer reflects a nuanced understanding of how insurance handles complex situations involving liability and responsibility for injuries or damages over time. Understanding this helps in recognizing how claims would be processed under such scenarios in the insurance field.